Embattled C&C Group today announced a programme to reduce operating costs across the business in Ireland by cutting 120 jobs at Bulmers, Clonmel, Ireland, where the Bulmers and Magners' cider brands, are produced.

C&C said it will deliver savings through a series of initiatives including the restructuring of the sales force in Ireland, and a reduction in headcount across a range of functions at the Group's manufacturing facility in Clonmel. C&C also plans to merge its Dublin operations into one consolidated office.

120 employees are impacted by today's announcement, and it is anticipated that the programme will be finalised by June 2009. The company said management will work with employees and the relevant agencies to help minimise the impact of the programme.

The Clonmel plant has a total workforce of 433, while 46 are employed in Dublin and another 70 in the North.

Sales of Magners's cider grew rapidly in the UK in recent years but have recently bombed. Long shot test marketing in Barcelona and Munich, failed to attract drinkers.

The company also announced a pay freeze for its existing staff and changes to their terms and conditions of employment.

Stephen Glancey, Chief Operating Officer of C&C Group commented: "This is a difficult day for C&C and our thoughts are focused on the employees affected by today's developments. The Group continues to face very difficult trading conditions in both its primary markets. This is compounded by continuing competitive pressure in the Group's core cider business and a loss of market share in both Ireland and Great Britain. While these decisions are deeply regrettable, they are essential to ensure that we improve our competitiveness in the face of current market challenges."

C&C will issue a 2008/09 full year trading update on 3 March 2009.